Choice of Accounting System

Robin Lee

One of the many decisions to be made on starting a business is about how you are going to keep your accounting records. The need for good record keeping undoubtedly is key attribute for business success helping in the smooth and profitable running of any venture. Being on top of the figures can also make for a more effective working relationship with your accountants. There time with you being spent more on the business plans as opposed to sorting out poor record keeping.

The choice of system or method for keeping your accounting records will depend on a number of key issues not least the nature of your business, your appreciation and level of comfort over such matters, a desire to keep in control of your finances ; as well cost and time constraints. The easy answer for some may be to out source the solution to a bookkeeper or accountant. In the main though most will look for an in house solution, through use of either a paper based manual bookkeeping package, use of computerised spreadsheets or an off the shelf computerised accounting packages.

The table on the following page aims to highlight aspects to consider when looking at what option to take or what might suit your needs best.

When considering your own requirements it may well be beneficial talking to your accountant as to what they feel suits you. Experience shows that making the right choice over your accounting system makes running a business easier and the preparation of end of year accounts much simpler.